Revenue growth has shifted from a 52.8% peak in 2023Q4 to a 2.3% contraction by 2025Q3, while gross margins have compressed significantly from 55.0% to 26.8% over the same period.
| Sales/Revenue | 574.14M | 592.65M | 480.46M | 407.22M | 118.88M | 18.12M | 22.5M | 17.83M | 2.17M | 8.46M | 7.53M |
| Revenue Growth % | -5.26% | 23.35% | 17.98% | 242.55% | 556.15% | -19.49% | 26.19% | 720.71% | -74.31% | 12.27% | - |
| Cost of Goods Sold | 416.75M | 442.23M | 330.51M | 221.63M | 62.22M | 5.22M | 4.11M | 5.88M | 0 | 0 | 0 |
| COGS % of Revenue | - | 74.62% | 68.79% | 54.42% | 52.33% | 28.8% | 18.27% | 32.99% | - | - | - |
| Gross Profit | 157.4M | 150.42M | 149.95M | 185.6M | 56.67M | 12.9M | 18.39M | 12.48M | 2.17M | 8.46M | 7.53M |
| Gross Margin % | 27.41% | 25.38% | 31.21% | 45.58% | 47.67% | 71.2% | 81.73% | 70% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 0.31% | -19.21% | 227.53% | 339.27% | -29.87% | 47.35% | 474.46% | -74.31% | 12.27% | - |
| Operating Expenses | 238.16M | 202.64M | 127.62M | 203.5M | 55.84M | 29.17M | 12.48M | 7.71M | 2.15M | 2.93M | 2.59M |
| OpEx % of Revenue | - | 34.19% | 26.56% | 49.97% | 46.97% | 160.98% | 55.44% | 43.25% | 98.8% | 34.67% | 34.38% |
| Selling, General & Admin | 178.35M | 128.56M | 93.12M | 157.93M | 41.77M | 14.88M | 12.26M | 13.53M | 2.15M | 2.93M | 2.59M |
| SG&A % of Revenue | - | 21.69% | 19.38% | 38.78% | 35.14% | 82.11% | 54.46% | 75.87% | 98.8% | 34.67% | 34.38% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 74.08M | 34.5M | 45.58M | 14.07M | 14.29M | 219K | -5.82M | -28K | 0 | 0 |
| Operating Income | -80.76M | -52.22M | 22.33M | -17.9M | 824K | -16.27M | 5.92M | 4.24M | 26K | 5.52M | 4.94M |
| Operating Margin % | -14.07% | -8.81% | 4.65% | -4.4% | 0.69% | -89.78% | 26.3% | 23.75% | 1.2% | 65.33% | 65.62% |
| Operating Income Growth % | - | -333.86% | 224.72% | -2272.82% | 105.07% | -374.86% | 39.71% | 16192.31% | -99.53% | 11.77% | - |
| EBITDA | -43.73M | -10.69M | 53.46M | 9.11M | 9.3M | -15.09M | 6.7M | 4.59M | 26K | 5.52M | 4.94M |
| EBITDA Margin % | -7.62% | -1.8% | 11.13% | 2.24% | 7.82% | -83.31% | 29.78% | 25.76% | 1.2% | 65.33% | 65.62% |
| EBITDA Growth % | -274.7% | -120% | 486.77% | -2.01% | 161.6% | -325.18% | 45.91% | 17569.23% | -99.53% | 11.77% | - |
| D&A (Non-Cash Add-back) | 37.03M | 41.53M | 31.13M | 27.02M | 8.47M | 1.17M | 785K | 358K | 0 | 0 | 0 |
| EBIT | -82.12M | -54.35M | 21.17M | -12.53M | -6.06M | -10M | 8.15M | 2.7M | 0 | 5.52M | 4.94M |
| Net Interest Income | -151.43M | -138.25M | -117.53M | -94.85M | -29.06M | -4.92M | -6.53M | -4.77M | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 3.63M | 2.13M | 0 | -206K | 0 | 0 |
| Interest Expense | 151.43M | 138.25M | 117.53M | 94.85M | 29.06M | 8.55M | 8.66M | 4.77M | 0 | 0 | 0 |
| Other Income/Expense | -152.79M | -140.38M | -118.69M | -89.47M | -35.94M | -2.28M | -6.43M | -6.31M | -28K | 0 | 0 |
| Pretax Income | -233.55M | -192.6M | -96.36M | -107.38M | -35.12M | -18.55M | -508K | -2.07M | -208K | 5.52M | 4.94M |
| Pretax Margin % | -40.68% | -32.5% | -20.06% | -26.37% | -29.54% | -102.38% | -2.26% | -11.62% | -9.57% | 65.33% | 65.62% |
| Income Tax | -5M | -2.75M | -6.25M | 18.81M | -3.54M | -3.69M | 510K | -275K | 406K | 1.98M | 2.28M |
| Effective Tax Rate % | 2.14% | 1.43% | 6.49% | -17.52% | 10.07% | 19.89% | -100.39% | 13.27% | -195.19% | 35.81% | 46.18% |
| Net Income | -225.79M | -189.85M | -90.11M | -126.19M | -31.58M | -14.86M | -1.02M | -1.8M | -614K | 3.55M | 2.66M |
| Net Margin % | -39.33% | -32.03% | -18.76% | -30.99% | -26.57% | -82.02% | -4.52% | -10.08% | -28.26% | 41.93% | 35.32% |
| Net Income Growth % | -51.88% | -110.68% | 28.59% | -299.54% | -112.54% | -1359.73% | 43.38% | -192.83% | -117.31% | 33.3% | - |
| Net Income (Continuing) | -228.55M | -189.85M | -90.11M | -126.19M | -31.58M | -14.86M | -1.02M | -1.8M | 0 | 3.55M | 2.66M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -7.98M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -12.63 | -11.60 | -5.85 | -7.66 | -2.15 | -1.25 | -0.09 | -0.15 | -0.06 | 0.31 | 0.24 |
| EPS Growth % | -45.01% | -98.29% | 23.63% | -256.28% | -72% | -1351.8% | 42.6% | -140.77% | -120.1% | 29.17% | - |
| EPS (Basic) | - | -11.60 | -5.85 | -7.66 | -2.15 | -1.25 | -0.09 | -0.15 | -0.06 | 0.31 | 0.24 |
| Diluted Shares Outstanding | 17.87M | 17.04M | 16.6M | 16.48M | 14.66M | 11.9M | 11.82M | 12.07M | 9.85M | 11.23M | 11.23M |
| Basic Shares Outstanding | 17.87M | 17.04M | 16.6M | 16.48M | 14.66M | 11.9M | 11.82M | 11.88M | 9.85M | 11.23M | 11.23M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | 47.94% | 263.14% |
Unsustainable Debt Service Burden
According to recent quarterly filings, FAT's revenue growth has shifted from a peak of 52.8% in 2023Q4 to a contraction of 2.3% by 2025Q3, signaling that the aggressive acquisition-led expansion strategy is failing to offset organic declines across the company's diverse restaurant portfolio.
The transition from double-digit growth to negative territory suggests that the platform's ability to integrate new concepts is no longer sufficient to mask underlying brand fatigue. Investors should monitor whether this deceleration reflects a broader systemic weakness in the casual dining segment or a failure to execute on the promised synergies of the roll-up model.
As reported in financial statements, FAT's gross margin has experienced significant volatility, dropping from a high of 55.0% in 2023Q4 to 26.8% in 2025Q3, which highlights the difficulty of maintaining profitability amidst rising input costs and a heavy reliance on company-owned store operations.
The inability to sustain higher gross margins suggests that the company's manufacturing and company-owned segments are highly sensitive to inflationary pressures. This margin profile appears inconsistent with a pure-play franchisor, indicating that the current operational mix may be diluting the potential for high-margin royalty income.
Based on FAT's reported figures, operating income has remained consistently negative over the last four quarters, with a 2025Q3 operating margin of -12.4%, suggesting that corporate overhead and integration costs are currently outpacing the revenue generated by the company's seventeen-brand portfolio.
The persistent negative operating leverage implies that the company's centralized shared-services architecture has yet to achieve the necessary scale to cover its fixed cost base. This trend warrants investigation into whether the current SG&A structure is bloated or if the underlying brands are simply not generating sufficient cash flow to support the corporate entity.
Financial data indicates that FAT's net income has remained deeply in the red, reaching a loss of $58.2 million in 2025Q3, a trend exacerbated by significant stock-based compensation spikes and non-operating charges that continue to erode shareholder value and complicate the assessment of core profitability.
The recurring nature of these net losses suggests that the company's bottom line is heavily impacted by interest expenses and integration-related costs rather than operational performance. Investors should be wary of the disconnect between top-line revenue figures and the actual cash-generating capacity of the business, which appears severely constrained by its capital structure.
Analysis of the income statement suggests that FAT's reliance on securitized debt to fund its acquisition-heavy strategy creates a precarious environment, as evidenced by the company's inability to achieve positive net income despite significant scale, potentially leaving it vulnerable to any further tightening in credit markets.
Short-sellers would likely focus on the company's inability to convert system-wide sales into positive net income, which may indicate that the acquisition strategy is fundamentally value-destructive. The lack of a clear path to profitability suggests that the current business model may be unsustainable without a major deleveraging event or a significant divestiture of assets.
Quick answers to the most common questions about buying FAT stock.
For fiscal year 2024, FAT Brands Inc. (FAT) reported total revenue of $592.7M. This represents a 7767.9% increase compared to $7.5M in 2015.
FAT Brands Inc. (FAT) reported a net loss of $189.8M for the fiscal year ending 2024.
FAT Brands Inc. (FAT) reported an operating income of $-52.2M, resulting in an operating profit margin of -8.8%. This margin reflects the operational efficiency of the business before interest and taxes.
FAT Brands Inc. (FAT) generated $150.4M in gross profit for the year, representing a gross profit margin of 25.4%. This demonstrates the company's core pricing power and production efficiency.